Retire in Washington: Cost, Taxes & FIRE Number for 2026
Retiring in Washington costs about $67,000 a year on average, earning a B- retirement tax grade and a #14 healthcare ranking. Here's the full breakdown — cost, taxes, and how much you actually need saved.
What It Costs to Retire in Washington
The average retiree in Washington spends about $67,000 a year ($5,583/month), based on BLS spending data for households 65 and older, adjusted for Washington's cost of living. That works out to a standard retirement number of $1,675,000 under the 4% rule, or $1.91M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
How the numbers below are calculated:
Annual cost = BLS Consumer Expenditure Survey 2024 (65+ household spending) × Washington's cost-of-living index (MERIC Q3 2025).
Standard Retirement Number = Annual Cost ÷ 0.04 (4% rule, ~30-year horizon)
FIRE Number = Annual Cost ÷ 0.035 (3.5% rule, 40–50+ year horizon for early retirees)
Washington earns a B- retirement tax grade from Plootus Research and ranks #14 of 50 states for healthcare quality. Combined with an average annual salary of $80,400 for working residents (median $64,800), that gives a fuller picture of what building — and eventually spending down — a nest egg looks like here.
Washington Retirement at a Glance
| Average annual retirement cost | $67,000/yr ($5,583/mo) |
| Standard Retirement Number (4% rule) | $1,675,000 |
| FIRE Number (3.5% SWR) | $1.91M |
| Retirement Tax Grade | B- |
| State Income Tax | None |
| Social Security Tax | ✅ No tax |
| Healthcare Quality Rank | #14 of 50 |
| FIRE-Friendliness Rating | ★★★☆☆ |
| Avg. Annual Salary (working residents) | $80,400 |
| Median Annual Salary (working residents) | $64,800 |
Sources: BLS CES 2024 (65+); MERIC Q3 2025; BLS OEWS May 2024; Plootus Research 2026.
Your Washington-Adjusted Retirement Number
Pre-filled with Washington's average retirement spending — adjust for your own situation.
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How Washington Compares to Nearby States
| State | Annual Cost | Retirement Number | Tax Grade | HC Rank |
|---|---|---|---|---|
| Washington | $67,000 | $1,675,000 | B- | #14 |
| Oregon | $65,000 | $1,625,000 | C- | #41 |
| Alaska | $64,000 | $1,600,000 | A | #35 |
| California | $92,000 | $2,300,000 | F | #8 |
How Washington Treats Retirees on Taxes and Healthcare
Washington carries a B- retirement tax grade from Plootus Research — tax-friendly with no state income tax, though the higher cost of living tempers the overall retirement picture.
State Income Tax
Washington has no state income tax at all, so wages, pensions, Social Security, and retirement account withdrawals aren't taxed at the state level.
Social Security Tax
Washington does not tax Social Security benefits, one of the factors behind its B- tax grade. Confirm current rules with a tax professional as exemptions can vary.
Washington ranks #14 nationally for healthcare quality — one of the stronger states for retirees who prioritize access to care.
Frequently Asked Questions: Retiring in Washington
Washington earns a B- retirement tax grade and ranks #14 of 50 for healthcare quality. Average annual retirement spending runs about $67,000, requiring roughly $1,675,000 in savings under the standard 4% withdrawal rule. Whether it's a good fit depends on your priorities — Washington has no state income tax, and it does not tax Social Security.
Washington does not tax Social Security benefits, one of the factors behind its B- tax grade. Confirm current thresholds and exemptions with a tax professional, since rules change year to year.
Using the standard 4% rule, retiring in Washington on its average annual cost of $67,000 requires approximately $1,675,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — Washington's FIRE number is approximately $1.91M, based on its $67,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
Sources
- Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (65+ age group)
- Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
- Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2024
- Kiplinger, Retirement Taxes 2026; WalletHub Best States to Retire 2026
- Plootus Research 2026 (tax grades, healthcare rank, FIRE ratings)
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